After consulting the 12 licensed market makers the following 14 names will be added to the underlying basket of the Dow Jones TRAC-X North America High Yield Index Series 2 Index that consists of the 100 most liquid North American high yield credit derivative swaps: Collins & Aikman Senior; Graphic Packaging International Inc.; Nalco Company; The Premcor Refining Group Inc.; DIRECTV Holdings LLC; DYNEGY Holdings Inc.; Williams Companies; Houghton Mifflin Company; Echostar DBS Corporation; AMR Corp.; United Rentals NA Inc. Sub.; TRIAD Hospitals Inc.; Case New Holland; RJ Reynolds Tobacco HLDG.
The following 14 names have been deleted from the Dow Jones TRAC-X North America High Yield Index: Collins & Aikman Sub; Ball Corp.; Hercules Inc.; Nuevo Energy Company; Lear Corporation; Westar Energy Company; Mirant Americas Generation LLC; Alliant Techsystems; Echostar Communications Corporation; Northwest Airlines; United Rentals NA Inc. Senior; Community Health Systems, Inc.; The Shaw Group Inc.; The GAP Inc.
The new composition of the Dow Jones TRAC-X North America High Yield Series 2 Index is the result of input from participating dealers and clients as to portfolio construction, reference entities and reference obligations. The standard notes of the participating market makers that are used to calculate the index values will be launched on December 3. The Dow Jones TRAC-X North America High Yield Indexes were initially launched on November 2001.
Since the launch of TRAC-X on April 1, 2003, over $150 billion linked to the Dow Jones TRAC-X Indexes has traded and 33 indexes and various off-shoot products such as options and tranches have previously been added to this leading CDS index family. The major regional Dow Jones TRAC-X Indexes that have launched to date include: Dow Jones TRAC-X Europe, Dow Jones TRAC-X NA (North America), Dow Jones TRAC-X NA High Yield, Dow Jones TRAC-X Japan, Dow Jones TRAC-X Australia, Dow Jones TRAC-X EM (Emerging Markets) and Dow Jones TRAC-X Asia.
Currently, 12 institutions are licensed market makers in the suite of Dow Jones TRAC-X products: Barclays Capital, Bear Stearns, BNP, Credit Suisse First Boston, HSBC, JP Morgan, KBC, Lehman Brothers, Merrill Lynch, Morgan Stanley, Nomura, UBS.
